Key Determinates of Private Investment Performance Dire Dawa, Ethiopia

Betselot Addisu Ayal; Kassa Yirga Bekalu; Mulugeta Molla Ayenalem

doi:doi:10.11648/j.jfa.20241205.12

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Key Determinates of Private Investment Performance Dire Dawa, Ethiopia

Betselot Addisu Ayal^*

, Kassa Yirga Bekalu

, Mulugeta Molla Ayenalem

Published in Journal of Finance and Accounting (Volume 12, Issue 5)

Received: 17 September 2024 Accepted: 6 October 2024 Published: 31 October 2024

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Abstract

Private investments are essential for Ethiopian economic success and growth. Despite government reforms aimed at fostering stability and growth, private investment continues to experience a downward trend characterized by volatility and unpredictability. Hence, the Primary objective of this study is to investigate the key determinants influencing the performance of private investment in Dire Dawa, Ethiopia. The study used a quantitative approach with an explanatory research design to analyze secondary time series data from 2012 to 2023 using SPSS. Descriptive and regression analyses were conducted. The main finding of the study indicates that private investment has a significant positive relationship with investment incentives, legal and political, credit facilities, corruption, and infrastructure. However, private investment development has a significant negative relationship with the loan interest rate. Except for the loan interest rate, the selected determinant factors can significantly positively affect the development of private investment in Dire Dawa City, but the loan interest rate has significant negative effects. Moreover, the regression analysis revealed that a combination of investment incentives, infrastructure, corruption, credit facilities, and loan interest rates collectively account for 74.4% of the variance in the outcome variables. Based on the study's findings, appropriate policy measures have been recommended.

Published in	Journal of Finance and Accounting (Volume 12, Issue 5)
DOI	10.11648/j.jfa.20241205.12
Page(s)	127-141
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Private Investment, Determinates, Time Series Analysis, Ethiopia, Dire Dawa City

References

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APA Style

Ayal, B. A., Bekalu, K. Y., Ayenalem, M. M. (2024). Key Determinates of Private Investment Performance Dire Dawa, Ethiopia. Journal of Finance and Accounting, 12(5), 127-141. https://doi.org/10.11648/j.jfa.20241205.12

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ACS Style

Ayal, B. A.; Bekalu, K. Y.; Ayenalem, M. M. Key Determinates of Private Investment Performance Dire Dawa, Ethiopia. J. Finance Account. 2024, 12(5), 127-141. doi: 10.11648/j.jfa.20241205.12

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AMA Style

Ayal BA, Bekalu KY, Ayenalem MM. Key Determinates of Private Investment Performance Dire Dawa, Ethiopia. J Finance Account. 2024;12(5):127-141. doi: 10.11648/j.jfa.20241205.12

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@article{10.11648/j.jfa.20241205.12,
  author = {Betselot Addisu Ayal and Kassa Yirga Bekalu and Mulugeta Molla Ayenalem},
  title = {Key Determinates of Private Investment Performance Dire Dawa, Ethiopia
},
  journal = {Journal of Finance and Accounting},
  volume = {12},
  number = {5},
  pages = {127-141},
  doi = {10.11648/j.jfa.20241205.12},
  url = {https://doi.org/10.11648/j.jfa.20241205.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20241205.12},
  abstract = {Private investments are essential for Ethiopian economic success and growth. Despite government reforms aimed at fostering stability and growth, private investment continues to experience a downward trend characterized by volatility and unpredictability. Hence, the Primary objective of this study is to investigate the key determinants influencing the performance of private investment in Dire Dawa, Ethiopia. The study used a quantitative approach with an explanatory research design to analyze secondary time series data from 2012 to 2023 using SPSS. Descriptive and regression analyses were conducted. The main finding of the study indicates that private investment has a significant positive relationship with investment incentives, legal and political, credit facilities, corruption, and infrastructure. However, private investment development has a significant negative relationship with the loan interest rate. Except for the loan interest rate, the selected determinant factors can significantly positively affect the development of private investment in Dire Dawa City, but the loan interest rate has significant negative effects. Moreover, the regression analysis revealed that a combination of investment incentives, infrastructure, corruption, credit facilities, and loan interest rates collectively account for 74.4% of the variance in the outcome variables. Based on the study's findings, appropriate policy measures have been recommended.
},
 year = {2024}
}

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TY  - JOUR
T1  - Key Determinates of Private Investment Performance Dire Dawa, Ethiopia

AU  - Betselot Addisu Ayal
AU  - Kassa Yirga Bekalu
AU  - Mulugeta Molla Ayenalem
Y1  - 2024/10/31
PY  - 2024
N1  - https://doi.org/10.11648/j.jfa.20241205.12
DO  - 10.11648/j.jfa.20241205.12
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 127
EP  - 141
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20241205.12
AB  - Private investments are essential for Ethiopian economic success and growth. Despite government reforms aimed at fostering stability and growth, private investment continues to experience a downward trend characterized by volatility and unpredictability. Hence, the Primary objective of this study is to investigate the key determinants influencing the performance of private investment in Dire Dawa, Ethiopia. The study used a quantitative approach with an explanatory research design to analyze secondary time series data from 2012 to 2023 using SPSS. Descriptive and regression analyses were conducted. The main finding of the study indicates that private investment has a significant positive relationship with investment incentives, legal and political, credit facilities, corruption, and infrastructure. However, private investment development has a significant negative relationship with the loan interest rate. Except for the loan interest rate, the selected determinant factors can significantly positively affect the development of private investment in Dire Dawa City, but the loan interest rate has significant negative effects. Moreover, the regression analysis revealed that a combination of investment incentives, infrastructure, corruption, credit facilities, and loan interest rates collectively account for 74.4% of the variance in the outcome variables. Based on the study's findings, appropriate policy measures have been recommended.

VL  - 12
IS  - 5
ER  -

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Author Information

Betselot Addisu Ayal

Department of Political Science and International Relations, Dire Dawa University, Dire Dawa, Ethiopia

Contact Email

http://orcid.org/0009-0005-5647-6301
Kassa Yirga Bekalu

Department of Political Science and International Relations, Dire Dawa University, Dire Dawa, Ethiopia

Contact Email

http://orcid.org/0009-0003-9399-2255
Mulugeta Molla Ayenalem

Department of Political Science and International Relations, Dire Dawa University, Dire Dawa, Ethiopia

Contact Email

http://orcid.org/0000-0002-1175-1964

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APA Style

Ayal, B. A., Bekalu, K. Y., Ayenalem, M. M. (2024). Key Determinates of Private Investment Performance Dire Dawa, Ethiopia. Journal of Finance and Accounting, 12(5), 127-141. https://doi.org/10.11648/j.jfa.20241205.12

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ACS Style

Ayal, B. A.; Bekalu, K. Y.; Ayenalem, M. M. Key Determinates of Private Investment Performance Dire Dawa, Ethiopia. J. Finance Account. 2024, 12(5), 127-141. doi: 10.11648/j.jfa.20241205.12

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AMA Style

Ayal BA, Bekalu KY, Ayenalem MM. Key Determinates of Private Investment Performance Dire Dawa, Ethiopia. J Finance Account. 2024;12(5):127-141. doi: 10.11648/j.jfa.20241205.12

Copy | Download

@article{10.11648/j.jfa.20241205.12,
  author = {Betselot Addisu Ayal and Kassa Yirga Bekalu and Mulugeta Molla Ayenalem},
  title = {Key Determinates of Private Investment Performance Dire Dawa, Ethiopia
},
  journal = {Journal of Finance and Accounting},
  volume = {12},
  number = {5},
  pages = {127-141},
  doi = {10.11648/j.jfa.20241205.12},
  url = {https://doi.org/10.11648/j.jfa.20241205.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20241205.12},
  abstract = {Private investments are essential for Ethiopian economic success and growth. Despite government reforms aimed at fostering stability and growth, private investment continues to experience a downward trend characterized by volatility and unpredictability. Hence, the Primary objective of this study is to investigate the key determinants influencing the performance of private investment in Dire Dawa, Ethiopia. The study used a quantitative approach with an explanatory research design to analyze secondary time series data from 2012 to 2023 using SPSS. Descriptive and regression analyses were conducted. The main finding of the study indicates that private investment has a significant positive relationship with investment incentives, legal and political, credit facilities, corruption, and infrastructure. However, private investment development has a significant negative relationship with the loan interest rate. Except for the loan interest rate, the selected determinant factors can significantly positively affect the development of private investment in Dire Dawa City, but the loan interest rate has significant negative effects. Moreover, the regression analysis revealed that a combination of investment incentives, infrastructure, corruption, credit facilities, and loan interest rates collectively account for 74.4% of the variance in the outcome variables. Based on the study's findings, appropriate policy measures have been recommended.
},
 year = {2024}
}

Copy | Download

TY  - JOUR
T1  - Key Determinates of Private Investment Performance Dire Dawa, Ethiopia

AU  - Betselot Addisu Ayal
AU  - Kassa Yirga Bekalu
AU  - Mulugeta Molla Ayenalem
Y1  - 2024/10/31
PY  - 2024
N1  - https://doi.org/10.11648/j.jfa.20241205.12
DO  - 10.11648/j.jfa.20241205.12
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 127
EP  - 141
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20241205.12
AB  - Private investments are essential for Ethiopian economic success and growth. Despite government reforms aimed at fostering stability and growth, private investment continues to experience a downward trend characterized by volatility and unpredictability. Hence, the Primary objective of this study is to investigate the key determinants influencing the performance of private investment in Dire Dawa, Ethiopia. The study used a quantitative approach with an explanatory research design to analyze secondary time series data from 2012 to 2023 using SPSS. Descriptive and regression analyses were conducted. The main finding of the study indicates that private investment has a significant positive relationship with investment incentives, legal and political, credit facilities, corruption, and infrastructure. However, private investment development has a significant negative relationship with the loan interest rate. Except for the loan interest rate, the selected determinant factors can significantly positively affect the development of private investment in Dire Dawa City, but the loan interest rate has significant negative effects. Moreover, the regression analysis revealed that a combination of investment incentives, infrastructure, corruption, credit facilities, and loan interest rates collectively account for 74.4% of the variance in the outcome variables. Based on the study's findings, appropriate policy measures have been recommended.

VL  - 12
IS  - 5
ER  -

Copy | Download